Computer Sales Tax Fraud Targeted

Newcastle Herald

Tuesday April 28, 1998

NEW legislation to combat sales tax fraud in the personal computer industry was granted royal assent this month.

The new part 7A of the Sales Tax Assessment Act 1992 introduces significant changes to the administration of sales tax dealings with personal computers and related equipment.

The new measures will apply to personal computers, laptops, notebooks, palmtops, monitors, keyboards, printers (dot matrix, ink jet and laser), CD ROM drives, modems, disk drives (hard and floppy), computer motherboards, CPUs, memory cards and computer controller cards.

The first phase of the new regime will centre on a process where importers, dealers and manufacturers of computers and related equipment apply to the Australian Taxation Office for accreditation.

Accreditation application forms are available from Australian Taxation Office branches.

They may also be obtained on the office's Internet site on ATOassist, at www.ato.gov.au.

Forms may also be sent electronically to the tax office.

Importers, dealers and manufacturers will have between two and three months to apply for accreditation and to set up their business systems to accommodate the new requirements.

The tax office is yet to announce a date where quotes to purchase the goods tax-free for resale will need to be authorised in a manner similar to credit card transaction authorisation.

The Australian Taxation Office has also established an information line on the new legislation.

Call 1800 634 905 for more information.